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Indian Oil Corp stops fuel supply to debt-laden Jet Airways

BusinessToday.In     April 5, 2019

State-owned oil marketing company Indian Oil Corporation (IOC) on Friday stopped fuel supply to the cash-strapped Jet Airways due to non-payment of outstanding dues, suggested media report.

The oil marketing company stopped supplying fuel to the crisis-hit airline from 12 noon Friday, sources told PTI.

SBI-led consortium of lenders on Thursday said that they will invite bids for selling stake in Jet Airways on April 6. They will also explore other options in case the stake sale efforts do not result in an "acceptable outcome".

Jet Airways is currently operating 28 planes, including 15 aircraft in the domestic routes, after it grounded additional 15 aircraft due to non-payment of amounts outstanding to lessors.

The airline, which is yet to receive fund from the lender, is battling crisis on multiple fronts, from grounded planes to disgruntled and unpaid employees threatening to go on strike.

Also Read: Jet Airways may not fly beyond April if it does not get Rs 1,500 crore in a week

The cash-starved Jet Airways on Wednesday deferred payment of March salaries citing "complexities" in the finalisation of the debt-recast plan, under which the SBI-led consortium of lenders took over the reins of the airline last month.

On March 25, the airline's board had approved 'the debt resolution plan', under which SBI-led consortium of lenders acquired a majority stake in the company after Naresh Goyal along with his wife Anita Goyal, and one nominee of Etihad Airways PJSC resigned from the board of the company. The lenders to the struggling airline also proposed immediate funding support of upto Rs 1,500 crore to meet the operating cost.

Meanwhile, shares of the airline closed trade at Rs 256.05 apiece, down 1.50 per cent, on the BSE on Friday.

Also Read: Jet Airways operating with 26 aircraft, fulfils norms to fly abroad: Aviation secretary

Edited by Chitranjan Kumar

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